1.CBIRC Issued Guidance to Urge Banks and Insurers to Step Up Digitalization
The China Banking and Insurance Regulatory Commission (CBIRC) recently issued the “Guidance on the Digital Transformation of the Banking and Insurance Industry”, the Securities Times reported on Friday. The Guidance includes seven parts, including general requirements, strategic planning and organizational process construction, digitalization of business operation and management, data capacity building, technology capacity building, risk prevention, organizational guarantee and supervision and management, with a total of thirty articles. The work objective proposed in the Guidance is to achieve significant results in the digital transformation of the banking and insurance industry by 2025.
2.SAFE Releases Data on Foreign Exchange Settlement and Sales in December 2021
As shown in the statistics of the State Administration of Foreign Exchange (SAFE), in December 2021, the amount of foreign exchange settlement and sales by banks was USD 279.7 billion and USD 233.7 billion, respectively, with a surplus of USD 46.0 billion. During January to December 2021, the accumulative amount of foreign exchange settlement and sales by banks was USD 2561.6 billion and USD 2294.0 billion, respectively, with an accumulative surplus of USD 267.6 billion. The amount of cross-border receipts and payments by non-banking sectors was USD 627.6 billion and USD 574.0 billion, respectively, with a surplus of USD 53.7 billion. During January to December 2021, the accumulative amount of cross-border receipts and payments by non-banking sectors was USD 6039.9 billion and USD 5683.5 billion, respectively, with an accumulative surplus of USD 356.4 billion.
3.Draft Rules on Interbank and Exchange-Traded Bond ‘Connect’ Released
Market regulators issued draft rules on Thursday for “connect” links between China’s interbank and exchange-traded bond markets, the latest clarification in a multi-year push to unify segregated markets. In addition to giving qualified institutions in each market access to securities in the other, it will allow qualified banks to trade exchange bonds through the connect system or directly open accounts to participate on the exchange market, according to a statement issued by the Shanghai and Shenzhen Stock Exchanges, the National Interbank Funding Center and market depositories.
4.The number of Residential Property Transactions is Only 5,970 in Macau 2021, Lowest in 6 years
Macau’s annual residential property transactions fell below the 6,000 level in 2021 with only 5,970 transactions, a third consecutive year of decline and the lowest in the past six years. The overall property prices also fell for the third consecutive year, with the annual average price of $101,310 per square meter of saleable area. According to the latest statistics released by the Macao Finance Bureau, in December last year, Macao’s first and second-hand residential only recorded 413 transactions, a monthly decline of 9%; cumulative fourth quarter transactions of 1,173 cases, the lowest quarterly transaction volume last year, a quarterly reduction of 22%.
5.Long-Term Apartment Rental Platform Q&K Share Fell by 97%, Facing Delisting and Bankruptcy
Q&K International Group, as the No.1 share of long-term rental apartments platform, fell by 97%, while 5 executives resigned, facing bankruptcy. It took less than 3 years for Q&K to list on NASDAQ and to be accepted by the court for bankruptcy liquidation. According to the announcement of Shanghai Third Intermediate People’s Court, the bankruptcy liquidation of Q&K was decided on January 4, and creditors had until March 20 to file their claims online. The liquidation financial report data shows that Q&K has been in a state of loss, and the company’s net loss climbed year by year from 2017 to 2020, with a cumulative loss of nearly 2.8 billion yuan in four years. The original issue price was USD 17 on the day of listing in November 2019, while today the share price of Q&K is only USD 0.49, dropped 97%, facing the risk of being delisted from Nasdaq as share price below USD 1 for a long time.
6.Youzan Kicks off First Round of Layoffs
“Youzan is laying off staff and executives are also leaving”, a source told Sina Technology. Youzan launched the first round of layoffs this month, and firstly cut staffs from product and technical R&D. Sina Tech also learned that Youzan Vice President Chen Jinhui has left in October 2021. Several sources who accepted the layoffs confirmed that Youzan has indeed written “staff optimization” into its OKR for 2022 – the overall number of people outside of direct frontline sales will be reduced by a certain percentage throughout the year. Some insiders estimate that this round of layoffs at Youzan is expected to cut over 1,500 people.
7.Full Truck, Lalamove, Didi Freight, KuaiGou Interviewed by Transportation Office
According to the Ministry of Transport, four Internet freight platform companies including Full Truck, Lalamove, Didi Freight, 58 Freight’s KuaiGou, are interviewed by transportation authority office, and four Internet taxi platform companies including Didi Chuxing, Cao Cao Chuxing, T3 Chuxing and Meituan Chuxing are given a notice. The interview notice pointed out that truck drivers’ feedbacks of these platforms’ arbitrary adjustment of pricing rules, rising membership fees, inducing vicious low-price competition, overloading illegal transport, allegedly infringing on the legitimate rights and interests of practitioners, which trigger widespread dissatisfaction of truck drivers and social concern.
8.Five Chinese Firms Signed Agreement to Make Ribonucleoside Analog Drug
The Pharmaceutical Patent Pool (MPP) announced on January 20 that it had signed an agreement with 27 companies to produce and supply generics of the oral anti-new coronavirus (CCP Virus) drug Molnupiravir to 105 low- and middle-income countries or regions around the world. Five Chinese pharmaceutical companies have signed agreements with MPP, namely Fosun Pharma (600196.SH/02196.HK), Borui Pharma (688166.SH), Viva Bio’s Langhua Pharmaceutical, Shijiazhuang Longze Pharmaceutical and Shanghai Desano. Except that Langhua Pharmaceutical is authorized to produce APIs, the other four Chinese pharmaceutical companies can produce APIs and finished drugs at the same time. Molnupiravir is an oral form of a ribonucleoside analog jointly developed by Merck & Co and Ridgeback.
【G Translators- Financial Team】
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